Jack Henry Associates Presented April 10 2008

Jack Henry & Associates Presented April 10, 2008 Jonathan Goh Dan Xu

Agenda I. III. IV. V. VI. Company Overview Accounting Analysis Industry Analysis & Economic Outlook Competitors Portfolio Fit & Valuation Recommendation

Company Overview Business Overview Revenue Breakdown Major Holders

Company Overview Jack Henry Banking solutions for business information and financial transactions Expanded within the De-Novo and Mid-Tier Market Supports 15% of Mid-Tier Banks Assets from $1 billion to $30 billion Capitalized on emerging shift from in-house to out-sourced solutions Source: Jack Henry and Associates, 2007 Annual Report

Company Overview Symitar Acquired by Jack Henry & Assoc. in 2000 Provides core processing solutions for credit unions of all sizes 6 Corporate Credit Unions 36 of 123 Credit Unions with assets over $1 billion Market Leader in Core Processing Platforms for Credit Unions Leader in Credit Unions with assets over $25 million Source: Jack Henry and Associates, 2007 Annual Report

Company Overview Profit. Stars Risk Mitigation and Control Solutions Fraud Detection and Prevention Enterprise Risk Management Identity Management and Control Business Continuity and Disaster Recovery Solutions Source: Jack Henry and Associates, 2007 Annual Report

Revenue Streams Support and Services Hardware Sales Third Party Resellers In House & Outsourced Support Sale of Computer Servers and Mainframes Implementation and Training Outsourcing Services EFT Support License Fees JKHY Marketing Unit Source: Jack Henry and Associates, 2007 Annual Report

Revenue Breakdown Source: Jack Henry and Associates, 2007 Annual Report

Revenue Breakdown Source: Jack Henry and Associates, 2007 Annual Report

Management – Executive Committee John Prim – CEO, Director Tony Wormington – President/COO Key strengths in operational management and research Kevin Williams, CPA– CFO, Treasurer Previously served as the President and COO Appointed as CFO in 2001 Joined as controller in 1998 Management Assessment No incumbent founding members Combination of operational and technological expertise Maintained very strong financial health historically Source: One. Source Business Browser, Reuters

Management – Board of Directors Michael Henry – Chairman Wesley Brown, since 2005 CEO of Central Bank (Lebanon, MO) James Ellis, since 1985 MD of St. Charles Capital, LLC (Denver, CO) Craig Curry, since 2004 Son of late founder; director since 1986 Former CEO, SVP and Head of Research Managing Partner of Ellis/Rosier Financial Services Matthew Flanigan, since 2007 SVP and CFO of a Missourri based manufacturing company Source: One. Source Business Browser, Reuters

Management – Board of Directors Jerry Hall, sinception John Prim, since 2004 Current CEO Marla Shepard, since 2007 Co-Founder of JKHY, former CEO President and CEO of First Future Credit Union (San Diego) Board of Directors Assessment 5 out of 8 Independent directors Diverse experience in consumer banking and operations Renewal of Directors in recent years Source: One. Source Business Browser, Reuters

Major Shareholders Breakdown Proportion % of Shares Held by All Insider and 5% Owners 10% % of Shares Held by Institutional & Mutual Fund Owners 84% Number of Institutions Holding Shares 235 Major Direct Shareholders Shares Michael E. Henry 1, 233, 447 Jerry D. Hall 1, 138, 308 John W. Henry 1, 004, 727 Tony L. Wormington 510, 075 James J. Ellis 300, 000 Source: Yahoo! Finance

Accounting Analysis Earnings Quality Analysis Du. Pont Analysis Cash Flow Analysis Summary of Accounting Analysis

Earnings Quality Analysis 1200 Big Picture: Revenue, Assets, Net Income & Stockholder’s Equity have increased steadily in past three years. 1000 800 600 400 200 0 1. 2 Revenue 2005 Assets Net Income 2006 Stockholder's equity 2007 1 0. 8 Diluted EPS & Dividends declared per share have increased steadily in past three years. 0. 6 0. 4 0. 2 0 2005 Diluted EPS Dividends declaired per share 2006 2007

Assets • Assets grows steadily • Large and growing cash position

Liabilities & Equity • No debt • Significant Increase in Free Cash Flow in 2006 over 2005, and in 2007, it decreased a little bit, but still acceptable

Income Statement • Steady gains • Profits are generated from Continuing Operations • No non-recurring profits

Du. Pont Analysis • Ratios are steadily increasing • Asset Turnover is not increasing from 2005, but not volatile

Cash Flow Profile • • • Positive CFO Negative CFI Negative CFF in 2006 and 2007 2005, JKHY acquired Tangent Analytics, LLC, (“Tangent”), RPM Intelligence, LLC, with payments $4, 000 and $6, 241 in cash before any earn-out , respectively All numbers are in thousands * Data not available Source: Forbes. com

Cash Flow Analysis 2005 2006 2007 1 st quarter 2008 2 nd quarter 2008 CFO + + + CFI - - - CFF + - - Growing Strong

2 nd Quarter Earnings Review EPS GAAP of $0. 32 Inline with Consensus Estimate Earnings Guidance Strong growth in Support and Services Outsourcing In-house maintenance ATM/Debit card processing Improved Cost control Back Log Measure of future business and revenue Current Quarter increase of 1% Increased 7% from a year ago

Share Repurchase Program Under authorization of the Board of Directors, the company may repurchase shares with available cash and short term borrowings On June 30, 2006, there were 2, 766 shares in the treasury stock and the company had authority to repurchase up to 2, 225 shares On August 25, 2006, the Board approved an authorization for an additional 5, 000 shares During fiscal 2007, the Company repurchased 4, 335 shares for $98, 413 At June 30, 2007, there were 7, 101 shares in treasury stock and the Company had the authority to repurchase up to 2, 890 additional shares On Feb 4 th, the Board of Directors authorized another 5, 000 shares bringing the total authorization to 15, 000 shares

Summary of Accounting Analysis • • • High-quality earnings can be characterized as repeatable, controllable and bankable Strong Cash Flow Large and Growing Cash Position Virtually no debt Conservatively Capitalize Minimal off-balance sheet commitments

Industry Analysis & Economic Outlook

JKHY & Industry Past Performance

Industry Analysis Industry: Application Software ( GICS Industry Classification 45103010) JKHY is in an industry with a healthy number 1 of competitors, and looking at its sales, it is one of the smaller players Industry peers tend to fall in or around the small-cap growth area Most stocks in the industry have seen steadily growing revenue and earnings over the past three years Company Outlook: The economy will finally improve in seeable future, possibly in 2009 -20122, which should lead a rise in technology and information spending by banks and credit unions. Even in the unlikely event of continuing economic downturn, JKHY’s ability to make profits from recurring continuing business operations can provide a cushion of support 1. Morningstar. com 2. Valueline. com

Economic Outlook Tighter consumer spending Potential slowdown in the Financial Services sector More cash in savings and loans and credit unions Reversion to traditional lending standards Tightening costs and consolidation amongst banks Shift from licensing software to outsourcing EFTs still show strong potential growth Jack Henry’s Position in the Economy Well positioned in an economic slowdown Good business mix Low Financial Leverage

Competitors Past performance comparison SWOT analysis

1. Numbers from Morningstar 2. All the numbers are up to 4 -1 -2008 5. 5 yr ROA and 5 yr Average Net margin use fiscal year-end. TTM=trailing 12 months.

5. Numbers from Morningstar 6. Industry Average is equal-weighted 7. All the numbers are up to 4 -1 -2008

Past Performance Comparison Source: Yahoo! Finance

Weakness & Threats Jack Henry competes with larger firms that have significantly more resources to invest in upgrading their systems Consolidation in the banking industry is shrinking Jack Henry's customer base, and the surviving banks are larger, potentially giving them greater bargaining power Margins in Jack Henry's service and support segment are much lower than in its licensing segment. As service and support are accounting for an increasing portion of total revenue, this shift will pressure margins. Ongoing declines in the price of computer hardware driving down revenue and margins in Jack Henry's hardware segment Substantial switching costs mean Jack Henry rarely loses customers, it also makes it difficult to take business from competitors and increase the top line.

Strength & Opportunity Banks are very reluctant to switch their core processing provider, creating a wide economic moat for the company's business. Customers typically sign five- to seven-year contracts with Jack Henry, and attrition is very low--only about 3% annually--with the bulk of customer losses the result of customers being acquired by another bank The breadth of Jack Henry's product portfolio and its focus on serving small banks leaves it well-positioned Margins in the service and support segment, which accounts for 72% of revenue and 60% of gross profit, are much lower but still healthy is recurring and very stable because of low customer attrition Banks' increasing preference toward purchasing integrated suites of products as opposed to buying products individually should increase cross-selling opportunities for core processors, such as Jack Henry 1 Regulatory changes 2 are forcing smaller banks to upgrade their systems, driving demand for Jack Henry's products Unlike other core processors, Jack Henry has an unlevered balance sheet, giving it greater flexibility to pursue attractive acquisition opportunities as they arise Below average Business risk Good history of dividends payment, unlike most peers in the industry 1. 2. Morningstar

Valuation & Portfolio Fit

Projected Free Cash Flows

Cost of Capital and Firm Valuation

Sensitivity Analysis

Market Data Jack Henry and Associates Nasdaq Current P/E (ttm) 21. 60 Current P/E (ttm) 27. 20 Forward P/E (1 yr) 17. 53 Forward P/E (1/yr) 20. 30 Current EPS (ttm) $1. 19 Last Close $25. 70 Current P/E (ttm) 19. 94 Implied Earnings $1. 47 Forward P/E (1/yr) 13. 81 Earnings Growth 24% 52 Week Range 22. 22 - 29. 24 Historical P/E (4 yrs) 23. 00 S&P 500 Industry Current P/E (ttm) 20. 80

Current Portfolio Fit SRZ 2% MVSN 1% WAG 5% SRCL 6% KMB 5% JKHY 3% Cash 45% FR 9% DO 3% DFS 1% CPRT 7% AEO 8% Based on the close price at April 2, 2008 AEE 5%

Jack Henry and Associates Overview Company Management B Operations A Financial Health A Industry Positioning A Dividend Yield A Return on Equity A Economy Leverage A Business Mix A

Jack Henry and Associates Overview Current Price : $ 25. 47 1 DCF price: $29. 14 Fair Opinion: $26. 23 - $32. 06 Recommendation: HOLD 1. Closing price on April 7 th 2008.